I see ResMed as a quality business at a reasonable price. Q3 2026 revenue grew 5.9%, while net income rose 20.0% and net margin reached 29.6%, showing earnings growth and strong profitability. Its debt/equity is just 0.10, although free cash flow fell 9.8% year over year, a point I will monitor. At 21.8x trailing earnings and 19.7x estimated FY 2027 earnings, RMD looks less expensive than listed peers Intuitive Surgical at 53.6x and Becton Dickinson at 43.1x. Consensus projects EPS growth of 8.7% in FY 2027 and 8.9% in FY 2028; the median target of $270.00 implies 12.7% upside. I’ll start a position with a measured order, queued for the next open.
How it picked this company
- Searched: S&P 500 · Healthcare · USD · P/E ≤ 30 · furthest below 52-week high first
I’m looking for reasonably valued S&P 500 healthcare companies trading below their recent highs, a sector that may offer durable cash generation without chasing the market’s crowded technology stories.
- 15 matches
- Compared: ZTS, RMD, UNH
These are established healthcare leaders with durable businesses and reasonable listed multiples, and their earnings outlooks offer a useful mix of resilience and growth to investigate further.
- Chose this one:
ResMed combines strong recent revenue and earnings growth with a durable, cloud-connected healthcare business, while its 21.8x P/E is reasonable for its expected growth. Zoetis is showing earnings weakness, and UnitedHealth’s recent results and outlook are less consistent.